WEI Mortgage Corporation – Understanding New Qualified Mortgage Rules

WEI Mortgage Corporation, started in 2002, is a Virginia-based residential mortgage lender licensed in 40 states. A dedicated staff continuously improves their methods to ensure loan transactions are completed as efficiently as possible. WEI Mortgage Corporation strictly adheres to all local laws and practices, establishing long-term business relationships with real estate professionals who provide up-to-the-minute referrals and advice on real estate laws.

Current real estate knowledge is a must, as important rules and laws change frequently. New qualified mortgage laws will begin on January 1, 2014. A qualified mortgage is simply a loan that adheres to federal government standards, including the ability to repay rule and the Dodd-Frank Act. The qualified mortgage rule helps prohibit certain high-risk transactions and loan features, including limiting excessive upfront fees by lenders to help cover mortgage broker and loan officer costs, preventing toxic loan features like interest-only loans and loans with payment terms beyond 30 years, and putting limits on acceptable debt-to-income ratios (43 percent will be the limit starting in January). The qualified mortgage rules will provide legal protection to lenders who comply with the rules and help customers avoid high-risk debt situations.